You are searching about Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com, today we will share with you article about Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com was compiled and edited by our team from many sources on the internet. Hope this article on the topic Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com is useful to you.

Investing in the Stock Market: How to Get Started

In the world we live in today there is no shortage of access to investment information. This in itself however, can be a big problem. Asking questions about how to invest, where to invest, and what to look for, will give you many answers from many different sources. The trouble is diving through all the clutter to find the relevant information that fits your needs.

So if you’re looking to invest in the stock market, where do you start?

First things first, invest in what you know. If you are trying to evaluate a company, make sure you know how it works. The great Warren Buffett is often criticized for not investing in technology during the dot-com boom. His answer was simple. If you don’t know the business model, what the company does on a day-to-day basis, or how it generates revenue now, and in the future, then avoid it. Because of this he made billions of dollars every year for himself and his investors.

Once you know the types of companies to look for, you need ideas. Message boards, newsletters, financial news shows, and stock screeners are all good places to find ideas. Stock screeners are especially useful, because in addition to finding ideas, you can narrow down the search as you go to match your qualifications. I personally enjoy using the screener at http://finance.yahoo.com.

So you’ve found some companies worth checking out, what’s next?

1. Insider trading — This is anyone who is considered to have inside knowledge of the company, and also has money invested in the company’s stock. This can be a person who owns 10% or more of the company, a director, CEO, CFO, etc. You don’t want to buy a big stake in Company X when all the people who run it are out. So it’s always a good idea to see what the “smart money” is doing.

2. P/E ratio — The price to earnings ratio can also be a useful tool in evaluating a company. The P/E ratio tells you if the company is relatively undervalued, or overvalued. A company that is undervalued should have a P/E ratio that is lower than other stocks in their sector. This is a huge amount to put into a stock screener to find profitable companies.

Note: P/E can be manipulated (think Enron). Also P/E ratios vary greatly depending on the sector you look at. Technology stocks may have an average P/E ratio of 60, while oil companies may have an average P/E ratio of 10. Whenever I evaluate a stock, I don’t look at the P/E against all other companies, but I look at it against their competitors in the same sector.

3. Technical analysis and charts — This is another tool that helps you see where a company has been, where the company stands now, and where it is headed in the future. It shows the company in a graphical form where you can see the stock activity and volume over a period of time. You can find many tutorials on the internet about this, and you can even get a free DVD that shows you the basics from http://www.technitrader.com.

4. Management team — Some people only look at earnings, charts, and other technical methods to evaluate a company. This is not always a bad thing but to really know about a company, you need to know the management. You should find out what other companies they have been involved with in the past, and how they did when they were there. You also need to know where they plan to take the company you’re evaluating, and how long it will take them to get there. It’s like evaluating a sports team. You don’t pick a championship team without looking at the coaching staff.

These are some of the ways to help find companies to invest. As with anything, do your homework, write down your goals, and when in doubt, ask for advice from someone who has already achieved what you’re trying to do. Knowledge is the key to being successful in anything.

Video about Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com

You can see more content about Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com on our youtube channel: Click Here

Question about Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com

If you have any questions about Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com, please let us know, all your questions or suggestions will help us improve in the following articles!

The article Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com was compiled by me and my team from many sources. If you find the article Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com helpful to you, please support the team Like or Share!

Rate Articles Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com

Rate: 4-5 stars
Ratings: 7372
Views: 41474314

Search keywords Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com

Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com
way Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com
tutorial Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com
Good Questions To Ask A Guy Yahoo Answers Site Answers.Yahoo.Com free
#Investing #Stock #Market #Started

Source: https://ezinearticles.com/?Investing-in-the-Stock-Market:-How-to-Get-Started&id=150586